The artists declared as Labour’s biggest donors
Surprised? So were they ...
The Labour Party is hiding tens of thousands of dollars in donations behind over-inflated art auctions – and naming the artists as donors instead of the secret individuals handing over the big bucks.
The artists had no idea the party was naming them as the donors – they never saw any of the money. They say their works are auctioned off at well above market value to wealthy benefactors who want to keep their contributions secret.
Labour says the practice complies with electoral rules. But one party operative described the practice as ‘‘whitewashing’’ – a way to keep big donations private at a time when corporate contributions to political parties were falling because of public scrutiny.
‘‘What’s the value of a painting?’’ the operative said. ‘‘It’s hard to put a price on it, not like a car or an airfare or something that can easily be valued. But a painting can’t be valued, and that’s exactly how auctions are used to launder the money.’’
The Sunday Star-Times is calling for transparency in political funding so that all donations – large or small – are immediately disclosed to the Electoral Commission. The paper asks that loopholes allowing donors to be masked by trusts and other aggregators, like fundraising dinners and art auctions, be closed.
At present, anything less than $15,000 can be donated anonymously, and other loopholes exist to keep donors’ names out of the public domain.
Labour has hosted at least three art auctions in the past year – two in Auckland and one in Wellington – selling pieces from esteemed artists such as Dick Frizzell, Bill Hammond and Judy Millar.
The works were assigned valuations but sometimes sold for thousands of dollars more.
After sale, the values were recorded as party donations from the artist – even though the artist never saw the money and often had no idea what was going on.
The difference from any inflated auction price remained secret unless it surpassed the $15,000 disclosure threshold. So, the party could sell a painting valued at $20,000 for up to $34,999 before anyone other than the artist was disclosed as a donor.
Labour get something and I end up with nothing. Auckland artist Stanley Palmer
Two such artists have appeared on Electoral Commission returns this month, listed as giving donations exceeding $30,000. Neither had seen any of the money, and neither was aware the donation had been listed in their name.
Wellington artist Karl Maughan provided Labour with two paintings for auction in the last year. He said he gave them to campaign operative Barbara Ward, who works for Labour leader Jacinda Ardern.
‘‘Once I’ve given them the painting that’s it, I don’t have anything to do with it then,’’ he said.
Maughan said he was a Labour supporter and understood his paintings were being sold to raise funds, but questioned the transparency of the process.
‘‘I didn’t know they used my name when declaring the donation,’’ he said. ‘‘I guess the donation should be in the person’s name who bought it because it’s their money.’’
One of his paintings was listed as selling at auction last month for $36,000, he said, a ‘‘few thousand more’’ than it usually would.
Works from at least 18 artists were on offer at the event, held at Q Theatre in Auckland. Tickets were $165.
Auckland artist Stanley Palmer also provided artwork. According to the Electoral Commission register he had donated more than $39,000 to Labour since June.
‘‘I suppose it’s from both the artist and the buyer. Labour get something and I end up with nothing.’’
He was unaware he had been listed as a big party donor, but wasn’t concerned.
Labour general secretary Andrew Kirton said the party usually notified artists like Maughan and Palmer if their names were made public.
‘‘It’s so bloody complicated. Barbara is often in touch with them. I know in the past that’s been the case. I’m not sure exactly what’s gone on in this situation, but usually we’d let people know if they’d tipped over the $30,000 disclosure limit. And a lot of them are aware of the situation.’’
The party consulted art dealers, and sometimes the artists, to set prices, Kirton said. Considering that amount to be a donation from the artist was fair, he added.
A commission spokeswoman confirmed Labour’s art auction fundraising was legal. But at the previous election, Labour leader David Cunliffe vowed to clean up the party’s donations, given growing concern about the influence of big money in politics.
Out campaigning yesterday, Ardern took a more cautious line. ‘‘Certainly transparency is important to us and the rules we have to follow,’’ she said. ‘‘We need to get the balance right without being too bureaucratic with it too.’’
Prime Minister Bill English maintained the National Party’s staunch opposition to disclosing the identities of their donors.